RFPs & Procurement. Slide 1. Slide 2. Slide 3. You are here APD Overview. RFPs and Procurement
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1 Slide 1 You may experience some audio difficulties with these videos due to buffering issues. For the best video viewing experience, we recommend setting your monitor s screen resolution to 1074 by 768 pixels or higher. Slide 2 RFPs & Procurement Slide 3 You are here APD Overview Planning APD Feasibility Study Implementation APD RFPs and Procurement APD Updates Getting to Go Live Project Management 3
2 Slide 4 4 Slide 5 Session Objectives The Power of the RFP Getting What YOU want Open Competition & Conflicts of Interest Essential Components of an RFP The Importance of Being Specific Contractor Selection Criteria Bid Scoring The Contract is Your Protection 5 Slide 6 RFP IFB RFB IFP RFQ 6
3 Slide 7 Planning A World of Contractors Development IV&V Project Management Quality Assurance Implementation Specialties 7 Slide 8 FNS Thresholds for Procurement Approval Competitive { Noncompetitive { SNAP > $5M total acquisition cost WIC > $100K total acquisition cost SNAP > $1M total acquisition cost WIC > $100K total acquisition cost 8 Slide 9 FNS Timeframes 60 days 9
4 Slide States x 2 programs (WIC & SNAP) + states with multiple systems + WIC ITOs & US territories x ~3-6 docs/project 7 of us days 10 Slide Slide 12 Stewardship Ownership Partnership 12
5 Slide 13 Stewardship 13 Slide 14 Partnership 14 Slide 15 Ownership 15
6 Slide 16 YOU need: Knowledge Confidence Backing 16 Slide 17 State staff MUST: Know what you want Describe it accurately Recognize what resources you need to hire Describe them accurately Hire the contractor that has the right stuff Use tools to hold contractor accountable 17 Slide 18 What you want Reasonable cost Low risk Reliable outcome Happy Execs On time Happy customers No bad press What they want 17
7 Slide 19 What FNS wants Fair and competition Stewardship of Federal funds A process that results in access & integrity in benefit delivery A process that holds up to legal challenges Evidence that you are in control of your destiny 19 Slide Slide 21 Planning RFP vs. Development/Implementation RFP 21
8 Slide 22 Planning RFP Used to hire professional services to help a State agency plan the project thoroughly, prepare the required documents, and secure state and federal approvals. 22 Slide 23 DIY 23 Slide 24 The Exception to the Rule: State blanket purchase agreements or master contracts. 24
9 Slide 25 If the original contract or master agreement: Was competitive Included THIS type of work Had scope or $$ parameters Often used for hardware purchases or small consulting tasks, such as assistance with writing a small scope RFP 25 Slide 26 If the original contract or agreement: Wasn t competitive, but just a process of signing up on a list or meeting minor qualifications Was for unrelated services Not meant for major procurements! 26 Slide 27 Blanket purchase agreements or master contracts should not allow Conflicts of Interest 27
10 Slide 28 All Federally funded procurements must be (No unfair advantages in the bidding process) Contractor who develops requirements, specifications, or tasks, or writes the RFP Bid on that work 28 Slide 29 Option #1 All possible roles or functions In one RFP at the beginning All bidders must bid on all the parts, priced individually State can pick and choose OR 29 Slide 30 Option #2 Make it clear in the first RFP that the winner will help define other roles and that they will NOT be eligible to bid on those functions. 30
11 Slide 31 The same contractor should NEVER define the work and then bid on it OR do the work, and then evaluate it. 31 Slide 32 So far we know 1. FNS thresholds and 60 day review time 2. The importance of project OWNERSHIP 3. An RFP is to get you what YOU want 4. The allowable uses of a master contract 5. The pitfalls of conflicts of interest 6. FNS s obsession with competition 32 Slide 33 Implementation RFP Used to hire professional and technical skill sets to design a new system, write or adapt the software, produce documentation, and test and implement the system. 33
12 Slide 34 Components of an RFP Introduction & Overview Current processing environment Workload data New system environment (including projected growth) 34 Slide 35 Components of an RFP Solicitation Instructions and Conditions Terms and Conditions - legal and purchasing requirements Proposal structure and content Procurement schedule Q&A process Submission process 35 Slide 36 Components of an RFP Statement of Work (SOW) the MEAT! Desired project schedule Functional requirements Deliverables Installation, Conversion, Maintenance requirements Personnel requirements 36
13 Slide 37 Don t start from scratch! 37 Slide 38 FReD 38 Slide 39 Tasks and Deliverables: Create a detailed project timeline Guide state through design or functional verification process Document requirements and tech specs Write or adapt the application code Create user and technical documentation Conduct testing Convert data from the old system Conduct or support training Operate or train the Help Desk 39
14 Slide Slide Slide 42 State staff MUST: Know what you want Describe it accurately Recognize what resources you need to hire Describe them accurately 42
15 Slide Slide 44 Rely on bidders questions to clarify things you didn t explain fully. Bid the product they built for the last customer Guess Bid high enough to cover the unknowns 44 Slide 45 So what??? 45
16 Slide 46 Pay me now or and Pay me later 46 Slide Slide 48 48
17 Slide Slide Slide 51 51
18 Slide Slide 53 Components of an RFP Management Plan Identify who the contractor will report to Describe the project management structure Define the type and frequency of status reports required Specify who will review and approval of work performed Clarify roles of state staff and other contractors 53 Slide 54 Components of an RFP Evaluation and Award Process Identify evaluation criteria Specify weight or points for each one Describe the scoring process Specify the minimum technical score Explain how bidders will be notified 54
19 Slide Slide 56 DO Ensure that RFPs contain enough detail to clearly define requirements. 56 Slide 57 DO Describe requirements and timeline expectations in specific terms to provide the contractor with adequate information to develop a responsive bid. 57
20 Slide 58 DO Describe acceptable levels and measures of performance for products and/or deliverables. 58 Slide 59 DO Assign people with enough technical expertise to the evaluation panel Allow them enough time to really read and score all the proposals Provide them training on how the process works and what the selection criteria mean 59 Slide 60 DO Describe the performance and other relevant requirements of the procurement. DON T Specify a brand name product instead of allowing an equal product to be offered, unless you re talking about a state technical standard. 60
21 Slide 61 DON T Place unreasonable requirements on firms to qualify to do business. 61 Slide 62 DON T Specify geographical preferences. 62 Slide 63 DON T Require unnecessary experience Include unlimited liability clauses 63
22 Slide 64 DON T Allow noncompetitive pricing practices between firms or affiliated companies Permit organizational conflicts of interest Allow noncompetitive awards to consultants on retainer contracts Take any arbitrary action in the procurement process 64 Slide 65 Mandatory Criteria vs. Scored Factors 65 Slide 66 The Nanny Interview Minimum Mandatory Requirements At least 18 years old Has a driver s license No arrests or convictions Can read Has taken CPR class 66
23 Slide 67 The Nanny Interview Scored Factors Years of experience Number of children supervised at one time Experience with your children s ages References from previous employers Formal education 67 Slide 68 You Do This Already! 68 Slide 69 $$$ 69
24 Slide Slide 71 PRICE TECHNICAL 71 Slide 72 High Technical score High Cost score (meaning a low price) Low Technical score Low Cost score (meaning the price is high) TEST YOURSELF High Technical score Low Cost score (meaning the price is high) Low Technical score High Cost Score (meaning the price is low) 71
25 Slide 73 EXAMPLES 1000 possible points with 700 to technical & 300 to cost High Tech score 625 High Cost score 275 Highest Tech score 700 Low Cost score 100 Total Score 900 Low Tech score 350 Low Cost score 100 Total Score 450 Total Score 800 Lowest Tech score 300 Highest Cost score 300 (low bidder) Total Score Slide 74 EXAMPLES 1000 possible points with 300 to technical & 700 to cost High Tech score 250 High Cost score 550 Highest Tech score 300 Low Cost score 300 Total Score 800 Low Tech score 150 Low Cost score 300 Total Score 450 Total Score 600 Lowest Tech score 125 Highest Cost score 700 (lowest bidder) Total Score Slide 75 3 Phases of Bid Scoring 1. Mandatory Minimum Requirements 2. Minimum Technical Score 3. Price and Final Score 75
26 Slide 76 EXAMPLES 1000 possible points with 300 to technical & 700 to cost High Tech score 250 Highest Tech score 300 Low Tech score 150 Lowest Tech score 125 Slide 77 And the winner is.. High Tech score 250 High Cost score 550 Total Score 800 Low Tech score 150 Low Cost score 300 Total Score 450 Highest Tech score 300 Low Cost score 300 Total Score 600 Lowest Tech score 125 Highest Cost score 700 (lowest bidder) Total Score 825 Slide 78 High Technical score High Cost score (meaning a low price) Low Technical score Low Cost score (meaning the price is high) TEST YOURSELF High Technical score Low Cost score (meaning the price is high) Low Technical score High Cost Score (meaning the price is low) 71
27 Slide 79 Proposal: States your requirements back to you Promises you anything you want (even if you don t know what that is) Offers what they have to sell, not what you asked to buy 79 Slide 80 SUB- Did you invite this? 80 Slide 81 Withdraw and Re-Issue???!!! Are you kidding?! 81
28 Slide 82 If you don t have time to do it right, you don t have time to spend in court. 82 Slide 83 It is ok for bidders to improve upon your ideas. That s GREAT! 83 Slide 84 84
29 Slide 85 3 Phases of Bid Scoring 1. Mandatory Minimum Requirements 2. Minimum Technical Score 3. Price and final score 85 Slide 86 Go shopping for ideas in Handbook Slide 87 Handbook 901 Chapter 6 Procurement Criteria for Evaluating Proposals 87
30 Slide 88 WHEW! Are we done yet? 88 Slide 89 One more thing 89 Slide 90 90
31 Slide 91 Contracts Handbook 901 Chapter 6 Procurement All the Contract components, terms and conditions, checklists including FNSrequired provisions 91 Slide 92 Session Objectives The Power of the RFP Getting What YOU want Open Competition & Conflicts of Interest Essential Components of an RFP The Importance of Being Specific Contractor Selection Criteria Bid Scoring The Contract is Your Protection 92 Slide 93 Your next goal APD Overview Planning APD Feasibility Study Implementation APD RFPs and Procurement APD Updates Getting to Go Live Project Management 93
32 Slide 94 An engraved invitation from FNS Handbook
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